India and US reach interim trade deal slashing tariffs on Harley bikes while excluding Tesla
India will eliminate duties on Harley bikes and cut tariffs on US cars under a new trade pact. The deal excludes electric vehicles and leaves Tesla shut out.
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An interim U.S. 
US-India 
IN trade framework was released today, February 7, 2026, establishing a new tariff regime for premium vehicles entering India IN. The announced framework proposes to cut tariffs on high-end internal-combustion cars from the United States US to 30% over a 10-year period. This reduction specifically targets vehicles with engine capacities exceeding 3,000 cc, which have historically faced steep duties ranging from as high as 70% to 110%.
US-India IN trade framework was released today, February 7, 2026, establishing a new tariff regime for premium vehicles entering India IN. The announced framework proposes to cut tariffs on high-end internal-combustion cars from the United States US to 30% over a 10-year period. This reduction specifically targets vehicles with engine capacities exceeding 3,000 cc, which have historically faced steep duties ranging from as high as 70% to 110%.The newly released document also stipulates the complete removal of duties on Harley-Davidson motorcycles, providing the American brand with expanded access to the world's third-largest car market. While the move is a significant development for the Indian domestic auto industry and was coordinated between India's IN trade ministry and the U.S. US government, the concessions are strictly limited to specific categories of internal-combustion vehicles.
IN trade ministry and the U.S. US government, the concessions are strictly limited to specific categories of internal-combustion vehicles.
